2. Roger Sethsson Inter Hannover
AUTOMATED SYSTEMS IN AVIATION
THE IMPACT ON INSURANCE

3. FIVE QUESTIONS
1. What are insurers concern regarding the systems?
2. What is our concern in terms of liability?
3. Do we give discount for aircraft having the system?
4. Do we know that aircraft will be equipped with
automated TCAS system?
5. If TCAS required for all aircraft (including GA) the
cost will be huge. “We don’t want the cost for the
system to be more than the profit to make the
system”

4. AGENDA
• AVIATION INSURANCE BASICS
• TCAS LIABILITY – UNDERWRITING CONCERNS

5. PUTTING THINGS IN PERSPECTIVE

7. THE AVIATION MARKET VERSUS AUTO
 Aviation Market
• World-wide premium $ 6bn
• Number of units available to insure 400,000
 US Private Passenger Auto Market
• US Premium $165bn
• Number of units available to insure 193,000,000

8. TCAS LIABILITY – UNDERWRITING CONCERN
“Will lawsuits kill the autonomous car?” Source:
“When driverless cars crash, who’s to blame?”
Source:

9. TCAS LIABILITY – UNDERWRITING CONCERNS
 Technology risks
• Certification, Software, Cyber risks
 Catastrophic exposure
• Policy limit $ 5bn
 Products Liability
• US legal system (Jury), Spain (Judge)
 Grounding or Non-Occurrence Grounding
 Products re-call

10. THANK YOU!